Abolishing ownership period, will apartment prices continue to soar?

In the past 4 years, apartment prices have continuously increased for 19 consecutive quarters with an increase of up to 77% compared to the first quarter of 2019. Although it has skyrocketed, according to experts, along with the passing of the Housing Law (amended) with regulations on removing the time limit for owning apartments, apartment prices will continue to "heat up" in the coming time.

Mr. Giang Anh Tuan, Director of Tuan Anh Real Estate, commented that removing the regulation on apartment ownership period will affect people's psychology when buying a house, making many people no longer worry about only owning a house for 50 or 70 years. This will indirectly affect the increase in apartment prices.

" If buying an apartment can only be lived in for a few decades, many people will consider it a form of long-term rental housing and then they will not be too interested in this form of housing, and will hesitate when choosing to buy a house. But when the ownership period is removed, the apartment segment will be of interest to people and they will want to own more because the price is still more affordable. From there, demand will be stronger, while supply is limited, so house prices will increase, " Mr. Tuan analyzed.

According to Mr. Tuan, apartment prices will certainly continue to increase in the coming time due to the high cost of construction materials and expensive land prices.

Apartment prices are expected to continue to increase in the coming time.

Sharing the same view, Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, also said that long-term ownership apartments will be more popular. Therefore, removing regulations on apartment ownership time will have a positive impact on homebuyers' psychology, helping this market become more vibrant.

Regarding the impact on price, Mr. Quyet said that many people think that apartments with limited ownership are cheaper than apartments with long-term ownership, but if this happens, the difference is not much.

“ If it is cheaper, it may only be 5-7%, at most 10%, while other costs are fixed. Therefore, how much cheaper the price of a limited-term apartment depends on how much the State collects for land, ” Mr. Quyet said.

However, according to Mr. Quyet, apartment prices will still increase in the coming time due to the large gap between supply and demand.

" Just looking at the supply and demand in the current market, we will see that the supply is very low, but the demand is high. Demand is always stable but supply is gradually running out, " Mr. Quyet cited.

In fact, the demand in the real estate market is still very high, especially for products with real demand. However, in the context of legal problems, many projects cannot be implemented, the housing market is scarce in supply, input costs such as construction materials, equipment, labor... still tend to increase, so it is understandable that housing prices, especially the apartment segment, increase accordingly.

Due to scarcity of supply, apartment prices will be difficult to decrease.

Commenting on the price of apartments in the coming time, Dr. Nguyen Van Dinh - Chairman of the Vietnam Association of Real Estate Brokers (VARS), said that the real estate supply in general and the apartment supply in particular in the coming time will hardly have a breakthrough. Apartments from the low-end to mid-range and high-end segments will continue to be in short supply, so prices will be difficult to decrease, and may even increase.

Regarding this issue, Mr. Nguyen Van Dinh predicted that the selling price of primary apartments in 2024 will continue to increase by an average of 3-8%, in particular, the price of luxury apartments will increase the most.

At the 6th Session, the 15th National Assembly officially passed the amended Housing Law, which will take effect from January 1, 2025.
Regarding the regulations on the term of use of apartment buildings (Article 58), the recently passed Housing Law stipulates that the term of use of apartment buildings is determined based on the design documents and the actual time of use of the apartment building according to the inspection conclusion of the competent authority. The term of use of the apartment building according to the design documents must be clearly stated in the appraisal document of the competent authority according to the provisions of the law on construction.
The term of use of an apartment building is calculated from the date of acceptance of the apartment building into use according to the provisions of the law on construction.
When an apartment building has expired according to the design documents specified in Clause 1 of this Article or has not expired according to the design documents but is damaged, at risk of collapse, and does not ensure safety for the owners and users of the apartment building, the Provincial People's Committee must direct the inspection and assessment of the quality of the apartment building according to the provisions of Article 61 of this Law.

Chau Anh

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